Finally some news that should be positive for mortgage rates. The 10 year treasury bond rallied pretty good today (yields down). The yield dropped closed the day at 3.78% down from 3.92% just the other day. All things being equal this should provide some relief to fixed mortgage rates from the drive upwards they've had the last week.
The main catalyst for this drop in rates were too awful economic reports this morning. The Philadelphia Fed manufacturing index coming in at -24 vs an expected -10, where any negative numbers indicates contraction instead of growth. The conference boards leading indicators came in at -.1 the forth straight month it's been negative also indicating growth contraction. Kinda weird the conference board put out a nice fluffy report yesterday saying a recession is unlikely despite their own indicators showing we are most likely in one right now.
Bond yields also tend to drop along with the stock market (which dropped today) as money makes a flight to safety from equities into bonds.